{"id":9609,"date":"2018-01-15T09:57:51","date_gmt":"2018-01-15T08:57:51","guid":{"rendered":"http:\/\/passodue.flywheelsites.com\/2018\/01\/15\/sales-forecasts\/"},"modified":"2024-02-23T10:59:42","modified_gmt":"2024-02-23T09:59:42","slug":"sales-forecasts","status":"publish","type":"post","link":"https:\/\/diariodiunconsulente.it\/en\/2018\/01\/15\/sales-forecasts\/","title":{"rendered":"Sales forecasts: rear-view mirror or a lens pointed forwards?"},"content":{"rendered":"<p><span style=\"font-size: 18px;\">by <a href=\"\/en\/passodue\/\">Alberto Aleo<\/a> and <a href=\"\/en\/passodue\/\">Alice Alessandri<\/a><\/span><\/p>\n<p><span style=\"font-size: 18px;\">This is the period when companies have the last chance to commit their sales force to drafting goals for the coming year. It is an important time when organizations rediscover their entrepreneurial spirit by reconsidering their vision of the world and their ability to give and receive <a href=\"\/en\/2015\/09\/14\/circle-of-trust\/\">trust<\/a>. Like a period of entrepreneurial adolescence that comes around every 12 months.<\/span><\/p>\n<p><span style=\"font-size: 18px;\">As consultants we\u2019re often involved in guiding and suggesting the best methods to carry out this vital task; there is no doubt that the sales target underpins any subsequent strategic and operational forecast made by the Company.<\/span><\/p>\n<hr \/>\n<blockquote>\n<p style=\"text-align: left;\"><span style=\"font-size: 21px;\"><em>In our experience, there are two ways to approach this process: one that we will call \u201cin reverse\u201d and the other that we will call \u201cexploratory&#8221;.<\/em><\/span><strong><br \/>\n<\/strong><\/p>\n<\/blockquote>\n<hr \/>\n<p><span style=\"font-size: 18px;\"><span class=\"text-highlight\">In the first case, companies start by analyzing the previous year to define a \u201cgrowth\u201d percentage<\/span> that is in line with the company\u2019s economic and financial needs and objectives. This approach involves directors and managers in three main stages:<\/span><\/p>\n<ul>\n<li><span style=\"font-size: 18px;\">a first phase that we could call <em>checking the rear-view mirror<\/em> that consists in evaluating the trends of the previous years and comparing them with the future growth needs of the company;<\/span><\/li>\n<li><span style=\"font-size: 18px;\">a second phase of <em>commercial engineering<\/em> aimed at transforming what emerged in phase one into percentages of growth turnover;<\/span><\/li>\n<li><span style=\"font-size: 18px;\">and a third phase of <em>internal negotiations<\/em> with the objective of ensuring the choices made in the first two phases are accepted through the various levels of the sales force.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-size: 18px;\">As with every choice, this approach has pros and cons. Among the advantages is the fact that it ensures <strong>speed,<\/strong> with decisions taken <strong>centrally<\/strong> by the management, which reinforces leadership in decision-making as well as permitting a perfect <strong>match<\/strong> between commercial objectives and business needs. On the other hand, this way of setting the target hides pitfalls such as the <strong>lack of reliability<\/strong> resulting from the fact that such analyses fail to take into account information from the sales team and the <strong>downgrading of the role of sales staff <\/strong>who are forced to accept choices coming from above.<\/span><\/p>\n<p><span style=\"font-size: 18px;\">Although such flaws often exceed the merits, most companies still tend to adopt this method. Why is this? We believe that such a choice is based on an \u201cunwritten agreement\u201d between the sales force and the management that we could summarize as follows:<\/span><\/p>\n<hr \/>\n<blockquote><p><span style=\"font-size: 21px;\"><em>You decide, but I reserve the right to disagree later.<\/em><\/span><\/p><\/blockquote>\n<hr \/>\n<p><span style=\"font-size: 18px;\">Basically, both sides are passing the buck, with the management making unilateral decisions and delegating responsibility for their consequences and the sales force passively accepting these choices but immediately preparing to find arguments to justify any possible failures. <span class=\"text-highlight\">What appears to be a convenient solution for everyone in the short term may seriously compromise the company&#8217;s results.<\/span><\/span><\/p>\n<p><span style=\"font-size: 18px;\">The method we prefer is that of the <em>explorer<\/em>. In some ways, we could say that this approach is exactly the opposite of the one described above. In fact, it commences with the gathering of information and the operational choices of the sales force and then incorporates these to meet the needs of the company.<\/span><\/p>\n<p><span style=\"font-size: 18px;\">To proceed correctly, our salespeople need to analyze their <a href=\"\/en\/2016\/07\/04\/law-of-attraction\/\">customer<\/a> portfolio and trends and then choose the appropriate actions to produce the desired results.<br \/>\n<\/span><\/p>\n<hr \/>\n<blockquote><p><span style=\"font-size: 21px;\"><em> Indeed, rather than a forecast, it would be more precise to talk about a detailed planning of the following year\u2019s activities, from which the results will derive.<br \/>\n<\/em><\/span><\/p><\/blockquote>\n<hr \/>\n<p><span style=\"font-size: 21px;\"><span style=\"font-size: 18px; color: #555555;\">The sales staff should be the first to advocate this approach as it empowers them, allowing them to plan their results.<\/span><em><br \/>\n<\/em><\/span><\/p>\n<p><span style=\"font-size: 18px;\"><span class=\"text-highlight\">A maxim frequently used by management dictates that \u2018the best way to predict the future is to invent it\u2019.<\/span> This method, based on operational choices is much more reliable, but on the one hand it requires a strong <strong>capacity to delegate<\/strong> by the management, who must trust and rely on their people in the field, and on the other hand, the willingness of the sales force to <a href=\"\/en\/2015\/11\/23\/responsibility\/\"><strong>take responsibility<\/strong><\/a> for the choices by acting and not reacting. \u00a0One of the risks inherent in this approach is the potential deviation of the sales force\u2019s plans from what the company management deems necessary to achieve. The <strong>flexibility of the processes<\/strong> and the willingness to <strong>dialogue<\/strong> through the involvement of the various company departments to ensure the new goals become reality, are fundamental qualities for any managers and directors who wish to use this technique.<\/span><\/p>\n<hr \/>\n<blockquote>\n<p style=\"text-align: left;\"><span style=\"font-size: 21px;\"><em>On the other hand, you also need a sales force well-versed in interpreting data, and designing and planning the required actions.<\/em><\/span><strong><br \/>\n<\/strong><\/p>\n<\/blockquote>\n<hr \/>\n<p><span style=\"font-size: 18px;\">As we have been arguing for a while, our profession has changed with the salesperson once again playing a central role in company processes. This change imposes a new step, which transforms sellers from order gatherers to hunters, in the knowledge that the best way to achieve a sales target is to prepare it carefully and in detail.<\/span><\/p>\n<p><span style=\"font-size: 18px;\">In life, as with management, it&#8217;s all about questions and perspectives: if I ask myself \u2018what will happen in a year\u2019s time?\u2019 I will probably find any prediction tricky. <span class=\"text-highlight\">If I ask myself instead \u2018what projects do I have for the coming year?\u2019 I become the protagonist and creator of my results<\/span> and I enhance my chance of achieving them.<\/span><\/p>\n<pre>| partem claram semper aspice |<\/pre>\n","protected":false},"excerpt":{"rendered":"<p>Here&#8217;s how to make reliable and rational sales forecasts.<\/p>\n","protected":false},"author":6,"featured_media":9610,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[97,85],"tags":[246,239,247,353],"class_list":["post-9609","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-best-commercial-management","category-abilities","tag-results","tag-sales","tag-strategy","tag-vendita-en","entry","has-media"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v15.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Sales forecasts: rear-view mirror or a lens pointed forwards? - Passodue<\/title>\n<meta name=\"description\" content=\"This is the time of the year in which companies employ their sellers into establishing next year goals: better known as Sales Forecasts.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/diariodiunconsulente.it\/en\/2018\/01\/15\/sales-forecasts\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Sales forecasts: rear-view mirror or a lens pointed forwards? - Passodue\" \/>\n<meta property=\"og:description\" content=\"This is the time of the year in which companies employ their sellers into establishing next year goals: better known as Sales Forecasts.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/diariodiunconsulente.it\/en\/2018\/01\/15\/sales-forecasts\/\" \/>\n<meta property=\"og:site_name\" content=\"Passodue\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/passodue\" \/>\n<meta property=\"article:published_time\" content=\"2018-01-15T08:57:51+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-02-23T09:59:42+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/diariodiunconsulente.it\/wp-content\/uploads\/2020\/12\/pexels-photo-63901.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"690\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@passodue\" \/>\n<meta name=\"twitter:site\" content=\"@passodue\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Organization\",\"@id\":\"https:\/\/diariodiunconsulente.it\/en\/#organization\",\"name\":\"Passodue\",\"url\":\"https:\/\/diariodiunconsulente.it\/en\/\",\"sameAs\":[\"https:\/\/www.facebook.com\/passodue\",\"https:\/\/www.instagram.com\/passodue\/\",\"https:\/\/www.linkedin.com\/company-beta\/10017842\/\",\"https:\/\/www.youtube.com\/channel\/UCbxyw6anbCWhBzUaNayFTMA\",\"https:\/\/twitter.com\/passodue\"],\"logo\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/diariodiunconsulente.it\/en\/#logo\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/diariodiunconsulente.it\/wp-content\/uploads\/2020\/09\/Passodue.png\",\"width\":401,\"height\":112,\"caption\":\"Passodue\"},\"image\":{\"@id\":\"https:\/\/diariodiunconsulente.it\/en\/#logo\"}},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/diariodiunconsulente.it\/en\/#website\",\"url\":\"https:\/\/diariodiunconsulente.it\/en\/\",\"name\":\"Passodue\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\/\/diariodiunconsulente.it\/en\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":\"https:\/\/diariodiunconsulente.it\/en\/?s={search_term_string}\",\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/diariodiunconsulente.it\/en\/2018\/01\/15\/sales-forecasts\/#primaryimage\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/diariodiunconsulente.it\/wp-content\/uploads\/2020\/12\/pexels-photo-63901.jpeg\",\"width\":1920,\"height\":690},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/diariodiunconsulente.it\/en\/2018\/01\/15\/sales-forecasts\/#webpage\",\"url\":\"https:\/\/diariodiunconsulente.it\/en\/2018\/01\/15\/sales-forecasts\/\",\"name\":\"Sales forecasts: rear-view mirror or a lens pointed forwards? - Passodue\",\"isPartOf\":{\"@id\":\"https:\/\/diariodiunconsulente.it\/en\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/diariodiunconsulente.it\/en\/2018\/01\/15\/sales-forecasts\/#primaryimage\"},\"datePublished\":\"2018-01-15T08:57:51+00:00\",\"dateModified\":\"2024-02-23T09:59:42+00:00\",\"description\":\"This is the time of the year in which companies employ their sellers into establishing next year goals: better known as Sales Forecasts.\",\"breadcrumb\":{\"@id\":\"https:\/\/diariodiunconsulente.it\/en\/2018\/01\/15\/sales-forecasts\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/diariodiunconsulente.it\/en\/2018\/01\/15\/sales-forecasts\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/diariodiunconsulente.it\/en\/2018\/01\/15\/sales-forecasts\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"item\":{\"@type\":\"WebPage\",\"@id\":\"https:\/\/diariodiunconsulente.it\/en\/\",\"url\":\"https:\/\/diariodiunconsulente.it\/en\/\",\"name\":\"Home\"}},{\"@type\":\"ListItem\",\"position\":2,\"item\":{\"@type\":\"WebPage\",\"@id\":\"https:\/\/diariodiunconsulente.it\/en\/2018\/01\/15\/sales-forecasts\/\",\"url\":\"https:\/\/diariodiunconsulente.it\/en\/2018\/01\/15\/sales-forecasts\/\",\"name\":\"Sales forecasts: rear-view mirror or a lens pointed&hellip;\"}}]},{\"@type\":\"Article\",\"@id\":\"https:\/\/diariodiunconsulente.it\/en\/2018\/01\/15\/sales-forecasts\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/diariodiunconsulente.it\/en\/2018\/01\/15\/sales-forecasts\/#webpage\"},\"author\":{\"@id\":\"https:\/\/diariodiunconsulente.it\/en\/#\/schema\/person\/e2f27d16f0db802e888fe305f0ef8fc1\"},\"headline\":\"Sales forecasts: rear-view mirror or a lens pointed forwards?\",\"datePublished\":\"2018-01-15T08:57:51+00:00\",\"dateModified\":\"2024-02-23T09:59:42+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/diariodiunconsulente.it\/en\/2018\/01\/15\/sales-forecasts\/#webpage\"},\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/diariodiunconsulente.it\/en\/#organization\"},\"image\":{\"@id\":\"https:\/\/diariodiunconsulente.it\/en\/2018\/01\/15\/sales-forecasts\/#primaryimage\"},\"keywords\":\"results,sales,strategy,vendita\",\"articleSection\":\"Commercial management,Professional abilities\",\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/diariodiunconsulente.it\/en\/2018\/01\/15\/sales-forecasts\/#respond\"]}]},{\"@type\":\"Person\",\"@id\":\"https:\/\/diariodiunconsulente.it\/en\/#\/schema\/person\/e2f27d16f0db802e888fe305f0ef8fc1\",\"name\":\"Passodue\",\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/diariodiunconsulente.it\/en\/#personlogo\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/3c0b663ce733b95d59fba2aa762af24ef020b1a5033417def4012f26fe7dac9e?s=96&d=mm&r=g\",\"caption\":\"Passodue\"},\"description\":\"Passodue, studio di consulenza e formazione, nasce nel 2012 dalla volont\\u00e0 di Alice Alessandri e Alberto Aleo di unire le loro esperienze per dare una svolta alla vita personale e professionale. Il progetto \\u00e8 basato sull\\u2019idea di cambiare la forma mentis del mercato rispetto ai concetti di \\u201cvendita\\u201d, \\u201cmarketing\\u201d e \\u201cleadership\\u201d dimostrando che fare business eticamente si pu\\u00f2 e pu\\u00f2 essere assolutamente efficace.\",\"sameAs\":[\"http:\/\/diariodiunconsulente.it\"]}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/diariodiunconsulente.it\/wp-content\/uploads\/2020\/12\/pexels-photo-63901.jpeg","_links":{"self":[{"href":"https:\/\/diariodiunconsulente.it\/en\/wp-json\/wp\/v2\/posts\/9609","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/diariodiunconsulente.it\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/diariodiunconsulente.it\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/diariodiunconsulente.it\/en\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/diariodiunconsulente.it\/en\/wp-json\/wp\/v2\/comments?post=9609"}],"version-history":[{"count":0,"href":"https:\/\/diariodiunconsulente.it\/en\/wp-json\/wp\/v2\/posts\/9609\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/diariodiunconsulente.it\/en\/wp-json\/wp\/v2\/media\/9610"}],"wp:attachment":[{"href":"https:\/\/diariodiunconsulente.it\/en\/wp-json\/wp\/v2\/media?parent=9609"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/diariodiunconsulente.it\/en\/wp-json\/wp\/v2\/categories?post=9609"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/diariodiunconsulente.it\/en\/wp-json\/wp\/v2\/tags?post=9609"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}